Pound (GBP) slips amid mixed BoE commentary
The pound (GBP) fell yesterday, as mixed comments from Bank of England (BoE) policymakers failed to support Sterling.
In addition, the BoE said that the autumn budget could knock 0.5 percentage points off inflation, with these comments prompting a modest uptick in interest rate cut bets.
British data remains in short supply today, potentially leaving the pound without a clear trajectory.
Euro (EUR) pressured by geopolitical concerns
The euro (EUR) struggled to attract support yesterday as growing tensions between the US and the EU, as well as worries about the Russia-Ukraine war, dampened demand for the single currency.
In an interview with Politico, US President Donald Trump criticised the EU and European leaders, while also saying that Russia was in a stronger position than Ukraine in peace negotiations.
European Central Bank (ECB) President Christine Lagarde is due to speak this morning. Any comments on monetary policy or the Eurozone’s growth outlook could impact EUR.
US dollar (USD) wavers as markets digest jobs data
The US dollar (USD) was choppy yesterday, with the currency softening against stronger peers but gaining ground against weaker rivals in the afternoon.
USD drew some support from steady jobs data, with new releases showing signs of resilience in the American labour market.
The Federal Reserve will announce its latest policy decision this evening, with a rate cut widely expected. Could a defiantly hawkish tone from Fed Chair Jerome Powell help USD gain ground?
Canadian dollar (CAD) firms despite wavering oil prices
The crude-linked Canadian dollar (CAD) shrugged off uncertain movement in the oil market yesterday to rise against weaker peers as investors reassessed the Bank of Canada’s (BoC) path for interest rates ahead of this afternoon’s decision.
If the BoC strikes a slightly more hawkish tone today following last week’s strong jobs data, CAD could strengthen further.
Australian dollar (AUD) wobbles in absence of data
The Australian dollar (AUD) wavered overnight as a lack of Australian data left the currency without a clear direction.
New Zealand dollar (NZD) see-saws in uncertain trade
The New Zealand dollar (NZD) also fluctuated in overnight trade, initially slipping before clawing back most of its losses, amid an absence of data and an uncertain market mood.
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